Avon Cosmetics Romania, the most important direct sales companydomestically, with over 110m-euro turnover, has realised thatwithout promotions and offerings there is no way for it to grow, inthe context where clients, with a lower budget for purchases, areswitching to cheaper products, are attracted by promotions andprefer paying less for services as good as possible. "There was adecline in retail in H1, and a large part of clients shifted todirect sales owing to offers," quotes Răzvan Diraţian, thecommercial manager of Avon Cosmetics Romania & Moldova, one ofthe factors that can boost turnover in a year when most companiesexpect businesses to post further declines. The company'smanagement admits the money "saved" from cutting internal expensesand giving up receipts and orders on paper, expenses of severalhundred thousand dollars, was directed to promotions, advertisingand improving the product catalogue. The company did not raiseprices in the wake of the VAT hike in a bid to support the"one-digit increase" in the number of clients targeted for thisyear. Starting this year, the company will also introduce thepossibility of clients paying by phone, beside payments throughpostal offices, banks and the Internet.
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